Anxiety over U.S.-Chinese trade tension was reignited by Washington’s decision to require export licenses for technology sales to Huawei Technologies Ltd. American officials say the biggest global maker of network gear for phone carriers is a security risk, which Huawei denies.

That followed new tariff hikes announced by both sides in a broader battle over Beijing’s technology ambitions and trade surplus.

Both sides are “seemingly digging in for a battle of attrition,” said Mizuho Bank in a report. It said investors are trying to figure out the duration, the impact on profits and the “toxic atmosphere for American sales in China.”

On Monday, chipmakers led U.S. stocks lower as traders weighed the implications of the sales controls on Huawei, a major customer.

The U.S. government says suppliers including Huawei and its smaller Chinese rival, ZTE Corp., pose an espionage threat because they are beholden to China’s ruling Communist Party. Huawei denies it facilitates Chinese spying.

The S&P 500 lost 0.7% and the Dow fell 0.3%. The technology-heavy Nasdaq composite slid 1.5%.

Apple Inc. skidded after an analyst warned the iPhone maker’s growth prospects could dim as Washington and Beijing spar over trade.

Qualcomm, which gets about 65% of its revenue from China, slumped 6%. Broadcom, which gets nearly half of its revenue from China, also fell 6%.
ENERGY: Benchmark U.S. crude gained 2 cents to $63.23 in electronic trading on the new York Mercantile Exchange. The contract gained 29 cents on Monday to close at $63.21. Brent crude, used to price international oils, shed 20 cents to $71.77 per barrel in London. It lost 24 cents the previous session to $71.97.

CURRENCY: The dollar gained to 110.12 yen from Monday’s 110.06 yen. The euro declined to $1.1153 from $1.1169.

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Google reverses decision to cut ties with Huawei after US eases trade restrictions
PUBLISHED TUE, MAY 21 2019

Sam Meredith

KEY POINTS

The U.S. Commerce Department announced Monday it had granted a 90-day license for mobile phone companies and internet broadband providers to work with Huawei to keep existing networks online and protect users from security risks.

The exemption allows Google to send software updates to Huawei phones which use its Android operating system through to August 19.

Huawei will stock up on semiconductors, expert predicts

Alphabet Inc’s Google said Tuesday that it plans to work with China’s Huawei over the next 90 days, shortly after the U.S. temporarily eased some trade restrictions on the world’s second-largest smartphone maker.

The move marks a sudden and dramatic turnabout for the U.S. tech conglomerate. On Sunday, Google said it would cut ties with Huawei in order to comply with Washington’s decision to put China’s telecom giant on the so-called Entity List.

However, shortly thereafter, the U.S. Commerce Department announced it had granted a 90-day license for mobile phone companies and internet broadband providers to work with Huawei to keep existing networks online and protect users from security risks.

The exemption allows Google to send software updates to Huawei phones which use its Android operating system through to August 19.

“Keeping phones up to date and secure is in everyone’s best interests and this temporary license allows us to continue to provide software updates and security patches to existing models for the next 90 days,” a Google spokesperson told CNBC in an email on Tuesday.

Temporary general license
The U.S. Commerce Department said it would assess whether to extend the temporary exemptions beyond 90 days.

Late last week, the Commerce Department added Huawei and 68 other entities to an export blacklist, rendering it practically impossible for the Chinese company to purchase goods made in the U.S.

The companies placed on the Entity List are deemed to be engaged in activities that threaten the national security or the foreign policy interests of the U.S.

Monday’s announcement explained the latest authorization had been created as a temporary general license. It allows disclosures of security vulnerabilities and for Huawei to engage in the development of standards for future 5G networks — effectively prompting the firm to become more transparent.

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BEIJING (China Daily/ANN) - On the heels of the United States government announcement it will ban unauthorized exports of US technology to Huawei, by Monday, a number of major US tech giants, including Google, had reportedly stopped supplies.

Amid the escalating tit-for-tat trade blows between the world’s two largest economies, the US putting Huawei, the face of Chinese hi-tech progress, on its Entity List is no doubt a calculated blow to hit China and Huawei where it hurts. “America will probably use its ability to withhold components from Huawei as a bargaining chip in a future trade deal with China,” The Economist reckons.

Very likely so. Only things may not go the way Washington decision-makers have in mind.

If they wanted a replay of what happened to ZTE, a Chinese company which relies heavily on outsider technologies, they may never see it. Because Huawei is a dramatically different kind of business.

The Plan B Huawei has just revealed — a series of self-developed chips — is only part of what makes it an enterprise of strategic insight, and hence resilience. Over time, that insight has rewarded it with a viable biosphere that its founder Ren Zhengfei believes will enable it to weather the storm. “Our growth may drop a bit in the wake of US restrictions, but negative growth is impossible,” said a confident Ren during a Tuesday interview with Chinese media, adding that Huawei has cultivated longstanding trust with industry partners.

That may be why, even after Google barred Huawei from some Android features, Ren spoke highly of the Silicon Valley giant, praising it as a “good company”. That may be why despite the US government blacklisting Huawei, Ren on Tuesday expressed continued willingness to collaborate with US partners in the future.

Ren’s confidence lies in Huawei’s capacity to serve its customers under “any circumstances”, and has the support of its growing clientele at home and abroad.

“Last week, in public bidding by China Mobile, we won contracts to build 5G networks for 37 of the 40 cities,” Ren disclosed. “Our capacity for mass production is enormous, and will not drop much with US restrictions”.

The otherwise low-profile Huawei leader made no secret about his pride in his company’s technologies: “Huawei’s 5G will absolutely not be affected. When it comes to 5G technologies, others will definitely not catch up in two or three years”.

That was why the confident Ren said the 90-day exemption Washington declared on Monday was dispensable.

If those in Washington wonder why their European allies are reluctant to answer their calls for excluding Huawei from their 5G networks, Ren had an answer: “For every base station site, Huawei can save the Europeans 10,000 euros ($11,192). Instead of following the US, they have communicated with us closely”.

Huawei is not ZTE. And is unlikely to become the kind of vulnerable hostage the latter has been. The US tactic will not work second time around.

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Business Huawei's own OS system may be ready this year: Report
23 May 2019

BEIJING: Chinese telecom giant Huawei says it could roll out its own operating system for smartphones and laptops in China by the autumn after the United States blacklisted the company, a report said on Thursday (May 23).

The international version of the system could be ready in the first or second quarter of 2020, said Richard Yu, the head of Huawei's consumer business, told US channel CNBC.

The company was dealt a blow this week with Google's decision to partially cut off Huawei devices from its Android OS following a US order banning the sale or transfer of American technology to the firm.

"Today, Huawei, we are still committed to Microsoft Windows and Google Android," Yu said. "But if we cannot use that, Huawei will prepare the plan B to use our own OS."

"We don't want to do this but we will forced to do that because of the US government. I think the US, this kind of thing, will also not only be bad news for us, but also bad news for the US companies because we support" US businesses, Yu told CNBC. "We don't want to do this but we have no other solution, no other choice."

The US Commerce Department, which added Huawei and 68 of its affiliates to an "entity list" last week, on Monday announced a 90-day reprieve, allowing some services to continue.

MEMBER

That may be why, even after Google barred Huawei from some Android features, Ren spoke highly of the Silicon Valley giant, praising it as a “good company”. That may be why despite the US government blacklisting Huawei, Ren on Tuesday expressed continued willingness to collaborate with US partners in the future.

Ren’s confidence lies in Huawei’s capacity to serve its customers under “any circumstances”, and has the support of its growing clientele at home and abroad.

Huawei is definitely far ahead from anyone else in 5G, but losing access to Android will be a huge blow to them in the US and Europe. The Chinese market might live with a domestic Chinese OS, but internationally customers will not want to settle for that in my opinion.

Administrator

Beijing's new draft regulation reportedly looks to retaliate against the Trump administration's crackdown on Chinese tech giant Huawei with a ban on US tech companies.

China's Cyberspace Administration has proposed a set of cybersecurity measures which, if signed into law, would require operators of China's critical information infrastructure to "evaluate national security risk" when acquiring foreign products and services, the South China Morning Post reports.

China's internet watchdog is said to have published the draft regulation online for public feedback until 24 June.

The measures apparently do not specify the potential security risks, instead referring to the broad terms of "leaking, lost and cross-border transfer of key data" and "supply chain security threat".

Such a law would effectively give Beijing leeway in blocking unwanted US technology from Chinese market, said Economist Intelligence Unit analyst Nick Marro.

To recap, last week the US Department of Commerce blacklisted Chinese telecom equipment maker Huawei Technologies and 68 of its affiliates, which means that they now cannot buy parts and components from partners in the US without government approval.

The move was followed by US tech giants, including Google, Intel, Qualcomm, Xilinx, and Broadcom cutting ties with Huawei.

The revocation of Huawei's Android license by Google has raised particular concerns over the future of the Chinese firm's mobile devices, which run on Android.

In this vein, reports surfaced that Huawei is developing its own, alternative operating system. The "Huawei OS" is understood to be "far from ready" for the time being and is expected to become available next spring at the latest.

Meanwhile, Huawei managers say the recent moves by Washington will cause little damage to their corporation but will harm consumers.

"In recent days, restrictions, based on ungrounded allegations, have been imposed on Huawei in order to disrupt our business operations. We believe this behavior is totally unjustified," Huawei's Deputy Chairman of the Board, Ken Hu, said at a cybersecurity conference in Germany on Thursday.

"In Europe, approximately three-quarters of smartphone users rely on an Android-based phone. Huawei accounts roughly for 20% of this market. Such reckless decisions can cause a great deal of harm to consumers and businesses in Europe," he said.

The Trump administration has been seeking to choke off Huawei over allegations that it could be spying on behalf of the Chinese government, which the firm flatly denies.

However, Donald Trump hinted that Huawei, albeit "very dangerous", could be used as a bargaining chip in broader Sino-US trade talks.

"It's possible that Huawei even would be included in some kind of trade deal," Trump stated. "If we made a deal, I can imagine Huawei being included in some form of, some part of a trade deal."

The two world powers are now engaged in negotiations to put an end to the escalating trade war. The latest round of the trade talks wrapped up in the US on Friday without a deal, but the sides agreed to meet for further negotiations in Beijing.

On 9 May, the Trump administration increased the level of tariffs from 10 to 25 per cent on some $200 billion in Chinese imports. Later that day, Trump ordered tariffs to be raised on all remaining US imports from China, which are valued at roughly $300 billion.

It all started last June, after the Trump administration slapped 25 per cent tariffs on $50 billion worth of Chinese goods in a bid to address the trade deficit, prompting Beijing to respond in time. Since then, the sides have exchanged several rounds of trade duties.

Administrator

China state TV carries Daily Show spot on Huawei lead in 5G
By CHRISTOPHER BODEEN
27 May 2019FILE - In this July 4, 2018, file photo, the Huawei logo is seen in a shopping mall in Beijing. China’s latest propaganda broadside in its trade war with the U.S. features an unusual star: Trevor Noah of the Daily Show. A recent clip from the popular comedy tv show discussing Chinese equipment maker Huawei’s dominance in 5G mobile technology ran on Chinese state broadcaster CCTV’s national lunchtime news on Monday as part of a package of stories attacking the U.S. position in the ongoing trade war. (AP Photo/Mark Schiefelbein, File)

BEIJING (AP) — China has deployed an unlikely voice in its trade war with the U.S.: Trevor Noah of Comedy Central’s The Daily Show.

A brief clip from the comedian’s “If You Don’t Know, Now You Know” segment on Chinese equipment maker Huawei’s dominance in next-generation 5G mobile technology ran on state broadcaster CCTV’s national lunchtime news on Monday.

It was part of a barrage of stories and commentaries attacking the U.S. stance in the standoff between the world’s two largest economies.

Washington says Huawei, the leading supplier of telecom gear and No. 2 smartphone maker, is a security threat and is obliged to do the ruling Communist Party’s bidding. U.S. officials have provided no evidence for their assertions that the company, based in southern China’s Shenzhen, may use its equipment for espionage.

CCTV ran a Daily Show clip that highlighted Huawei’s lead in 5G technology. It did not include parts of the segment featuring concerns over China’s potential ability to spy using Huawei-equipped 5G networks.

“Recently, famous American talk show host Trevor Noah expressed his views on America’s relentless suppression of Huawei,” the CCTV host said. “He says the reason for the suppression is because Huawei possesses advanced 5G technology, while American 5G lags far behind.”

It then ran the Daily Show clips where Noah states, “And right now, the best 5G technology is made by a Chinese company called Huawei.”
“While America is developing its own 5G, China’s 5G is so far ahead. They’re basically going to set the trends,” Noah says. “So, this is a race many people are already saying America has lost.”

A Comedy Central spokeswoman for The Daily Show was unavailable because of the Memorial Day holiday.

Washington has ordered restrictions on U.S. technology sales to Huawei, subject to a 90-day grace period for Huawei smartphone owners and smaller U.S. telecoms providers that rely on its networking equipment, but only for existing hardware and software. The government said that grace period could be renewed.

In its broadcast Monday, CCTV also carried an interview with Huawei founder Ren Zhengfei, whose daughter, company CFO Meng Wanzhou, is under house arrest in Canada awaiting extradition hearings for U.S. fraud charges.

Huawei is prepared for an extended conflict, he said.
“This is likely to be long-term. We are prepared for a long-term battle, we don’t prepare for a short-term fight,” Ren said. “We fight a protracted war, and ... we might actually emerge stronger.”

“Before we had been suppressed by the U.S. and the occurrence of the Meng Wanzhou incident, our company was at its most perilous,” Meng said.

“Laziness. Everybody had money in their pockets and disobeyed assignments and were unwilling to work in places where conditions are tough. It was a dangerous state.”

“Now the entire company is galvanized, and combat power is booming. How is this the most dangerous time? It should be in the best state,” Ren said.

Meng is accused of lying to banks about Huawei’s dealings with Iran in violation of U.S. trade sanctions. Ren said she was using her time in house arrest to study for a PhD and remains “very optimistic.”

U.S. officials say the sanctions are unrelated to the trade war with China, but many analysts see them as a way to pressure U.S. allies to abide by Washington’s entreaties to exclude Huawei equipment from their next-generation 5G wireless networks.

Huawei Technologies relies on Google’s Android operating system and U.S. components suppliers for its smartphones, but Ren said last week that it has “supply backups” if it loses access to American components.

Huawei’s U.S. sales collapsed in 2012 after a congressional panel told phone carriers to shun it and its smaller Chinese competitor, ZTE Corp., as security threats.

Despite that, Huawei’s business elsewhere has been expanding, with global sales up 19.5% last year to 721.2 billion ($105.2 billion).

President Donald Trump’s administration has imposed 25% tariffs on $250 billion in Chinese goods and is preparing to hit another $300 billion worth. That would extend the higher tariffs to just about everything China ships to the United States.

China has ordered higher tariffs on $60 billion worth of American goods, among other retaliatory tactics.

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Till Trump do they part: Top tech firms cut ties with Huawei following US trade blacklisting
25 May, 2019

Last week, US President Donald Trump signed an executive order aimed at banning Chinese telecoms like Huawei from selling equipment to the US over an unacceptable risk to national security.

Following the order, the US Department of Commerce announced the blacklisting of Huawei along with 70 of its affiliates. The step prevented US-based corporations from selling or transferring technology to Huawei without a license issued by the Bureau of Industry and Security (BIS).

The harsh step has forced both foreign and US technology giants to halt their business transactions with the Chinese corporation to comply with the president’s order. RT looks at the companies that have opted to break up with Huawei.

Google
The American multinational technology company was the first to suspend its licenses and product-sharing agreements with the blacklisted Chinese corporation. Google, focused on internet-related services and products, cut its business deals with Huawei that involve the transfer of hardware and software. Google’s steps unavoidably deprives Huawei of access to Android operating system updates with its upcoming smartphones to be shut out of some Google apps.

Intel, Qualcomm, Xilinx & Broadcom
The Silicon Valley chip makers froze their supplies to Huawei following the US government’s announcement. The companies reportedly have told their employees that no new shipments would be made “until further notice.”
Lumentum Holdings, which sells components to Huawei, announced plans to halt the deals with the Chinese firm. The company said that it was lowering its quarterly outlook since sales to Huawei totaled 18 percent of overall revenue in the latest quarter.

Panasonic
Japan's Panasonic has joined US firms in stepping away from Huawei in the wake of the ban. The corporation said it would stop supplying some components to the Chinese firm. Later, the company said it was scrutinizing whether its products break US restrictions on trading with Huawei, causing some confusion, as the latest claims contradict the previous ones.

Miсrosoft
The US technology company removed Huawei’s products from its retail stores as well as Azure Stack, one of its websites offering cloud gear. Miсrosoft may also cut ties with the Chinese corporation in the sphere of consumer electronics and B2B decisions.

Vodafone
The UK telecom group Vodafone announced plans to suspend pre-orders of Huawei 5G handsets due to an alleged security controversy involving the Chinese company. The step came shortly after British mobile network operator and internet service provider EE said it had “paused” the launch of Huawei's 5G phones.

SoftBank, KDDI and NTT
Japanese major mobile carriers SoftBank and KDDI announced plans to postpone sales of new Huawei smartphones. Another telecommunications company, NTT, said it would stop taking orders for the new Huawei handsets, despite previous pledges to launch a new high-end Huawei model in the summer.

Amazon Japan
The Japanese unit of the US e-commerce titan Amazon suspended direct online sales of Huawei products. The company still allows third-party vendors to sell devices, including smartphones, tablets and PCs produced by the Chinese company.

ARM
British chip designer ARM ordered its staff to suspend “all active contracts, support entitlements, and any pending engagements” with the Chinese tech firm.

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The world’s second largest continent, Africa, is experiencing one of the fastest urbanization rates globally and Huawei wants to be a part of it, according to Adam Lane, senior director of public affairs at Huawei Technologies.

He told Xinhua News that Huawei is keen to boost environmental sustainability on the continent. African cities can adopt modern technology in the area of water and energy use, communications, security and safety improvement, explained Lane.

“Huawei is currently in talks with a number of African cities to promote the concept of smart cities,” he said during the Business Leaders Dialogue in Nairobi, Kenya.

The Chinese company is already deploying smart technology in some cities in Kenya, Nigeria and Botswana, according to Lane. Smart technology can be used to better monitor use of environmental resource which improves the sustainability of cities, he said.

The Chinese tech giant has also developed innovations to improve the safety of urban residents in Africa. “We have developed advanced communication and coordination centers that improve the response time for police and ambulances during times of emergencies,” said Lane.

Among the top smart city initiatives on the African continent are Konza Techno City in Kenya which is known as Africa’s Silicon Savannah, and the new coastal city (Eko Atlantic) on Victoria Island in Nigeria.

Ghana’s own Silicon Valley, the so-called Hope City in Greater Accra region, is expected to change Africa’s skyline forever. Rwanda’s Vision City and South Africa’s Waterfall City are also among the top five smart cities in Africa.

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Hong Kong (CNN Business)Ren Zhengfei, the CEO and founder of embattled Chinese tech company Huawei, is defending US rival Apple.

Asked in an interview with Bloomberg about calls in China to boycott Apple (AAPL), Ren said he would be opposed to any such retaliatory action from Beijing even as tensions with the United States escalate.

"That will not happen first of all, and second of all if that happens, I'll be the first to protest," Ren told Bloomberg.

"Apple is the world's leading company. If there was no Apple, there would be no mobile internet," Ren said. "Apple is my teacher, it's advancing in front of us, as a student why should I oppose my teacher?" he added.

The comments come as Ren's company is in crisis mode.

The US Department of Commerce placed Huawei on a trade blacklist earlier this month, effectively barring it from conducting business with American companies.

The ban forced suppliers like Google (GOOGL) and ARM Holdings to cut off ties with the Chinese company. Top carriers in the UK and Japan are also delaying the launch of Huawei smartphones.

The US restrictions threaten Huawei's position as the world's largest telecommunications equipment maker and No. 2 smartphone brand.

Washington's ban on the Chinese company "could stir up the smartphone industry by pausing Huawei's positive momentum," analysts at Fitch Ratings wrote in a note on Sunday. The ban could also benefit industry leader Samsung as consumers around the world look for alternatives to Huawei smartphones, they added.

Huawei and Apple have had vastly different fortunes in Huawei's home market of China.

Huawei shipped nearly 30 million phones in China in the quarter ended March, up 41% compared to the same period last year, according to research firm Canalys.

Meanwhile, Apple saw its iPhone sales in China drop 30% in the same period. The country remains a key market for Apple. Greater China, which includes Taiwan and Hong Kong, accounted for nearly 18% of net sales in the quarter ended March.

During an earnings call last month, Apple CEO Tim Cook said iPhone sales in China should be boosted by "improved trade dialogue" between

Beijing and Washington and "very positive customer response to the pricing actions we've taken in that market."

But since then, trade talks between Washington and Beijing broke down, and both sides ratcheted up tensions by slapping more penalties on billions of dollars worth of American and Chinese products.

The renewed trade dispute could hurt Apple, according to Fitch Ratings analysts.
"Apple could be another victim of the US-China trade war and its market-share loss may accelerate in the Chinese market," they said.

US President Donald Trump last week called Huawei "very dangerous," but then said he could see the company being included in a broader trade deal with China.

Ren told Bloomberg that using his company as a bargaining chip is "a big joke."'

"How are we related to China-US trade?" he said.

My views on this forum are strictly my personal opinions, and do not reflect that of any institution.

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Huawei, the only global smartphone maker to see growth in the market, is the number two smartphone maker in the world with a 19 percent global market share. Photo by Stephen Shaver/UPI | License Photo

SEOUL, May 27 (UPI) -- Samsung could be the big winner in a China-U.S. trade spat that has led to sanctions against Chinese smartphone giant Huawei, according to a statement Monday from Fitch Ratings, the New York-based global credit ratings and research firm.

"Turmoil from the U.S.-China trade dispute brings Samsung an opportunity to strengthen its position in the structurally weakening smartphone market," the statement said.

Amidst an ongoing trade war with China, the Trump administration placed Huawei, the Chinese telecommunications equipment and electronics giant, on an "entity list" that severely restricts it from doing business with any American company.

The Commerce Department has accused Huawei of being an arm of the Chinese government, saying it is "engaged in activities that are contrary to U.S. national security or foreign policy interest."

Following the blacklist, Google revoked Huawei's license of its Android operating system. Other major technology suppliers such as Britain-based ARM, which supplies the underlying architecture for Huawei's chipsets, have also cut ties, according to reports.

Last week, Washington gave Huawei a 90-day reprieve from the sanctions, but uncertainty still swirls around the company's prospects.

The restrictions on U.S. companies providing hardware, software and components to Huawei's smartphone business "could stir up the smartphone industry by pausing Huawei's positive momentum," the Fitch statement said.

Huawei is the number two smartphone maker in the world, with a 19 percent global market share in the first quarter of 2019, according to a recent report from International Data Corporation, following on the heels of Samsung's 23.1 percent.

The Chinese giant was the only global smartphone maker to see volume growth in a market that has otherwise seen shipments on the decline.

"Consumers used to the Android operating system are likely to consider buying other smartphone brands than Huawei, and Samsung could restore market share especially in regions where Huawei has shown strong recent growth," the Fitch statement said, citing Europe, South America and parts of Asia outside of China.

The United States actions against Huawei may also give Samsung the lead in newly developing segments of the market such as 5G and foldable phones, Fitch said, depending on how long sanctions last.

"U.K. and Japanese companies have followed suit in delaying the launch of Huawei's 5G smartphones, which could help boost the sales of Samsung and LG Electronics, two of a few 5G handset makers with ready-to-market products -- at least in the short term," the statement added.

Fitch expects the challenging outlook for smartphone manufacturers to continue due to saturation in developed markets and longer replacement cycles. Overall shipments fell 6.6 percent in the first quarter of 2019, according to IDC. Samsung's volume dropped by 8.1 percent, while Huawei's grew by 50 percent.

My views on this forum are strictly my personal opinions, and do not reflect that of any institution.

Administrator

A major scientific society has banned employees of Huawei, the Chinese communications giant, from reviewing submissions to its journals because of U.S. government sanctions against the company.

The New York City–based Institute of Electrical and Electronics Engineers (IEEE) told editors of its roughly 200 journals yesterday that it feared “severe legal implications” from continuing to use Huawei scientists as reviewers in vetting technical papers. They can continue to serve on IEEE editorial boards, according to the memo, but “cannot handle any papers” until the sanctions are lifted.

On 15 May, the U.S. Department of Commerce added Huawei Technologies Co. Ltd. and its affiliates to a list of companies for which a license is required before U.S. technology can be sold or transferred. The department can refuse to grant such a license, issued by the Bureau of Industry and Security (BIS), if it deems that any sales or transfers would harm U.S. national security interests. U.S. officials have alleged that the Chinese government could use equipment manufactured by Huawei, which is a global supplier of cell phones and wireless data networks, to spy on users or disrupt critical infrastructure.

Huawei scientists can continue to engage in a range of society activities, explains a 22 May IEEE statement to members. They can attend IEEE-sponsored conferences and make presentations, submit articles to IEEE journals, and participate in leadership and governance bodies to which they belong.

What they can’t do as an employee of a company on the BIS entity list is be given access to the type of technical information that would be part of a research article. Specifically, IEEE says they “cannot receive or access materials submitted by other persons until after IEE has accepted the material for publication.” At that point, Huawei scientists “may act as editor or peer reviewer for that material.”

The IEEE ban has sparked outrage among Chinese scientists on social media. “I joined IEEE as a Ph.D. student because it is recognized as an International academic platform in electronics engineering,” wrote Haixia (Alice) Zhang of Peking University in Beijing in a letter to IEEE leadership. “But this message is challenging my professional integrity. I have decided to quit the editorial boards [of two IEEE journals] until it restores our common professional integrity.”

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Here is where Trump fell. Punishing Huawei is not a good idea for the US market. Imagine if China decided to kick Apple out of China what could happen to Apple as a whole. Let's not forget that Apple factory is currently based in China

Administrator

Having faced Google’s move to exclude Huawei from its supplies following the US Department of Commerce’s overwhelming ban of Huawei products in the country, the Chinese telecom giant appears to be picking up pace to make up for it by coming up with their own independently developed operating systems.

Huawei Technologies Co is pressing ahead with a top-notch propriety operating system (OS) for smartphones and computers, after the Chinese telecom titan is reported by Global Times to have applied for its OS and other software trademarks on European soil, with the European Union Intellectual Property Office (EUIPO), weeks after the US proceeded with its all-embracing ban.

The EUIPO's website suggests that Huawei filed at least three different trademark application – the Huawei Ark Compiler, Huawei Ark and the Huawei Ark OS as recently as Friday with their descriptions stating that the company is seeking trademarks for compiler software and OS for electronic devices.

"It is a very tough task, but it's not impossible," said Zhang Yi, CEO of iiMedia Research Institute. "If Huawei succeeds in launching its own OS, that will be a turning point for not just the company, but for the whole smartphone industry. It will reshape the current software market dominated by US companies." Wang Yanhui, head of the Mobile China Alliance echoed the stance adding that Huawei’s move “should come as no surprise to anyone after the US ban.”

On 14 May, Huawei was granted a trademark "Hongmeng" for its OS by the Chinese National Intellectual Property Administration's trademark office, with Richard Yu Chengdong, head of Huawei's consumer business department, asserting in a statement that the company was aiming to launch its own OS as soon as this fall.

It earlier came to light that the Chinese telecom manufacturer had a plan B in store for its European markets, with the Shenzhen-based telecom giant reporetedly suggesting last year that app makers develop software for a new Huawei app store outside China, according to documents viewed by Bloomberg News. The Chinese company reportedly told potential partners that by the end of 2018 it would have 50 million Europeans using its own app store, preferring it to Google's, and is said to have been in talks with EU wireless carriers about marketing and promoting the new app store.

Google announced on 20 May that in compliance with the US’s blacklisting of the Chinese telecom market leader, it would cut its operating system supplies to it among the suspension of other business ties with the company, being closely followed by others like Japan’s Panasonic and NTT Docomo.

The US-issued executive order added Huawei and its 70 affiliates to a trade blacklist, thereby severely restricting their activity in the US, after several countries accused Huawei of being sponsored by the Chinese authorities and spying on their order.

Last year, Australia, Japan, New Zealand and the United States banned the company from participating in government contracts due to security concerns. Huawei has denied any involvement in it, arguing the codes used in the products are completely safe and Huawei has never had any ties to the Chinese government.

Wahington earlier warned its EU partners against giving Huawei access to building its 5G telecommunication network due to espionage accusations against the Chinese company, however, many countries turned a deaf ear to the warnings and persisted in their cooperation with Huawei.

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Pompeo tells Germany: Use Huawei and lose access to our data
May 31, 2019
David Brunnstrom

BERLIN (Reuters) - The United States raised the pressure on Western allies in a war of attrition over next-generation networks on Friday, saying countries that allow China’s Huawei to build their telecoms infrastructure could be cut off from crucial intelligence data.

Secretary of State Mike Pompeo issued the warning after meeting Foreign Minister Heiko Maas of Germany, which has so far stood with Britain and France in declining calls to ban the state-owned manufacturer from the 5G networks now being built.

In the latest sign of escalating trans-Atlantic tensions over trade and security, Pompeo, on the first leg of a five-day European tour, said that while countries would take a “sovereign decision” on which equipment to use, that decision would have consequences.

“(There is) a risk we will have to change our behavior in light of the fact that we can’t permit data on private citizens or data on national security to go across networks that we don’t have confidence (in),” he told a news conference.

Pompeo later met Chancellor Angela Merkel for brief talks before flying on to Switzerland, describing Germany as “a great, important partner and ally of the United States”.

Merkel herself had just flown back from the United States the night before after delivering a speech to graduating Harvard students in which she exhorted them to “tear down walls of ignorance” and to stand for truth over lies - words widely interpreted as veiled criticism of U.S. President Donald Trump.

“The U.S. is and remains our most important partner outside Europe,” Merkel told reporters ahead of the meeting. “We have many issues to discuss, since the world is not at rest,” she added, mentioning the challenge of preventing Iran from acquiring nuclear weapons and hindering Iran’s “aggressive actions”.

Pompeo urged close ally Britain this month not to use Huawei’s technology to build new 5G networks because of concerns it could be a vehicle for Chinese spying.

A Chinese Foreign Ministry spokesman, responding to similar comments on Huawei made by U.S. Vice President Mike Pence in Canada on Thursday, said the United States had yet to prove that Huawei’s products presented a security risk.

“We hope that the United States can stop these mistaken actions which are not at all commensurate with their status and position as a big country,” said spokesman Geng Shuang.

The United States is at odds with its German allies on a host of issues, from trade to military spending and nuclear non-proliferation.

IRAN AGREEMENT
Pompeo’s visit had been scheduled earlier this month, but was called off at the last minute as tensions rose over Iran. Berlin and Washington differ on the best approach to Iran over its nuclear program.

Under a 2015 nuclear agreement with major powers, which Washington withdrew from last year, Tehran accepted curbs on its uranium enrichment program in exchange for the removal of most international sanctions.

Iran’s decision this month to backtrack from some commitments under the accord - in response to U.S. measures to cripple its economy - threatens to unravel the deal.

The German Foreign Ministry said on its website: “Germany and the U.S. agree: For the security of the region, it is crucial that Iran does not come into possession of nuclear weapons.”

Maas stressed during his talks with Pompeo that “as long as Tehran adheres to the agreed rules, the agreement makes the region safer,” the ministry added. A German envoy seeking to preserve the nuclear deal visited Iran last week.

But in comments on Iran in an interview to run in German daily Bild on Saturday, Pompeo said: “We hope Germany does more ... The (Iranian) regime is an expansionist theocracy. Free democracies have a duty to protect the world from this threat.”

Pompeo also took a swipe at the German government for failing to reach a NATO target of spending 2% of national income on defense, telling Bild: “The most serious consequence is in the hands of the German population.”
“The federal government has given the promise of 2% and the people should demand that the government keeps its promise,” he said in usually blunt comments towards a NATO ally.
Reporting by Paul Carrel and Joseph Nasr in Berlin, Ben Blanchard in Beijing; Writing by Thomas Escritt; Editing by Frances Kerry and Stephen Powell

The United States raised the pressure on Western allies in a war of attrition over next-generation networks on Friday, saying countries that allow China's Huawei to build their telecoms infrastructure could be cut off from crucial intelligence data.

www.reuters.com

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